How does illumination work in the shadowfell?

The Dungeon Master’s Guide description of the shadowfell says:

It is a place of darkness that hates the light, where the sky is a black vault with neither sun nor stars.

I don’t quite understand this. If it is a place of darkness that hates light, then everything should be pitch black.

If everything is pitch black, then only creatures with darkvision can see their surroundings.

But I also read a lot of evocative descriptions of things that you can see on the shadowfell “far away” (jagged mountains, castles, wretched villages, etc), which makes no sense, because your vision would be limited to 120 ft.

So, how does illumation work in the shadowfell? Are creatures without darkvision blinded on this plane (unless they have light sources)?

How did earlier games handle this plane?